This is a key consideration in relation to buying or selling a business.
If a business is being purchased, the buyer will need to ensure that sufficient resources are available to achieve a successful completion. The buyer will also need to ensure that the acquisition is not overvalued.
If a business is being sold, the vendor will want to ensure that sufficient proceeds are generated to fund retirement or to invest in new projects. A vendor will often be unclear as to the value of a business.
Often price will be determined in conjunction with the structure of the deal. This can include earn out arrangements, deferred consideration, minimum net asset clauses, security and other issues.
Knowledge of market information and expertise in assessing and valuing businesses is a specialist area. We have considerable experience of this area and can advise you on all aspects.
The valuation process can, of itself, sometimes highlight potential issues. A formal valuation which does not meet expectations or requirements may result in a postponement of a sale or purchase project. A review of the business and internal restructuring may result in changes that enable the process to recommence.
If you need advice or would like to discuss how we might assist you, please do not hesitate to contact us.
Just a quick note to say thank you for the time spent with us today and thank you for your patience in explaining values and share options.